By Diksha-
The Future Retail and Reliance tussle is likely to move to Indian Courts as Amazon had recently invoked Arbitration proceedings over their deal to sell Future’s retail assets to Reliance Industries in the Singapore International Arbitration Centre (SIAC).
Amazon may approach an Indian Court to get its Foreign Award enforced.
Future Retail led by CEO Kishor Biyani has said that it was not a party to the arbitration agreement on the basis of which the Amazon had invoked the Arbitration proceedings and it shall take necessary steps to ensure that their Rs. 24,713 crore deal with Reliance is carried out without any further delay.
Amazon had approached the SIAC for alleged contractual violations and the SIAC told Future not to take any further steps. The SIAC’s order has apparently put the deal on hold.
According to the legal experts, the foreign award is not likely to hold any good in Indian Courts. Apparently, Interim orders are not enforceable under Indian Law.
The Amazon on Sunday said that they are satisfied with the interim order and will follow the Arbitration process.
But the Future Retail notifying the SIAC’s award clarified that all of its agreements with companies are governed under Indian Law and the provisions of Indian Arbitration Act only.
On August 29, Future had notified that it would sell its wholesale business of Big Bazaar, premium food chain Foodhall and fashion and clothes line to Reliance Industries. But it ran headlong into the Rs.2000 crore deal that Retail had signed with Amazon last year which would entitle it a 49% stake in Future’s company.
However, Future has said that it had not sold any stake in its company. It is only selling its assets; therefore there has been no violation on its part.
Future Retail is likely to move to the Delhi High Court soon against the SIAC’s interim order.